Why You Should Never Buy a Vehicle Direct from a Manufacturer

By: Mike's Car Store   |   26 Mar 2024

With automakers like Tesla coming onto the scene without relying on third-party dealerships, more and more consumers are considering the factory-direct approach when it comes to finding their next vehicles. But if you’ve been thinking of ordering directly from the manufacturer, this blog might set you up for a rude awakening. 

The main appeal of buying your vehicle directly is an easy one: the freedom of choice. It gives you the advantage of covering all the features you're looking for, from trim level to accessories and more. On the flip side, there are numerous reasons why buying directly is not the best idea. In this blog post, we’ll cover some of the most overlooked reasons you should never buy a vehicle directly from a manufacturer.

Problem #1: Control of the Market

The risk of allowing a small group like an automaker board to control the market can be quite dangerous for consumers. With the dealership model, you gave over 69,000 voice speaking and giving pushback with both positive and negative agendas. The truth is manufacturers aim to give as little as possible to the dealerships, which is why you’ll find so many dealer incentives available for volume. This volume refers almost exclusively to the new car market rather than the used ones. In Tesla’s case, for example, many of its vehicles get lowered so much that aftermarket sales become nearly impossible for owners looking to get a return on their investment.

Despite all the flack we’ve given dealerships over the years, in most cases, the dealer is working in the best interest of the buyer compared to the original manufacturer.


Problem #2: Distribution Network

When it comes to getting your vehicle serviced, it’s best to have it done by those who know it best. That’s why it's important to know how many OEM service centers you’ll have access to in your area. To use Tesla as another example, there are only 192 service centers nationwide. If you encounter issues with your vehicle after purchasing directly from the manufacturer, you may face challenges with service and repairs. Dealerships typically have service departments equipped to handle maintenance and repairs, while manufacturers may require you to seek service at authorized facilities.

Problem #3: Lack of Negotiation

When buying directly from the manufacturer, you may miss out on the opportunity to negotiate the price of the vehicle. Dealerships often have more flexibility in pricing and may offer incentives or discounts that manufacturers do not. Not to mention, manufacturers may have limited financing options compared to dealerships, which work with multiple lenders to offer competitive rates and terms. This could result in less favorable financing terms for buyers. 

Problem #4: Prices Tend to Be Higher or the Same

Manufacturer-direct sales may not always result in the best price for consumers. Without the competition of multiple dealerships, manufacturers may set prices higher than what you could find at a dealership offering discounts or promotions. Consider buying a pair of sneakers from a retailer vs. Footlocker listed at the same price. The manufacturer resorts to canceling out the middleman and taking the profits.

Problem #5: Lack of Personalized Service

Dealerships often provide personalized service, including test drives, vehicle demonstrations, and assistance with the purchasing process. Buying directly from the manufacturer may lack this level of customer support and guidance.

Find Affordable Used Cars near Louisville, KT, at Mike’s Car Store

Overall, while buying a vehicle directly from the manufacturer may offer some advantages, it's essential to weigh these potential drawbacks and consider your individual preferences and needs before deciding. 

Here at Mike’s Car Store, we specialize in helping the people of Louisville, Georgetown, and beyond find quality used vehicles at affordable prices, no matter your credit. Skip the wait times and the sticker shock and browse our inventory of used vehicles ready to be driven off the lot today!

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